The trend of job reductions in the technology industry continues into 2026, with several major companies announcing significant layoffs in the first month of the year. Companies like Meta and Amazon are among those that have initiated workforce reductions, primarily driven by the increasing integration of Artificial Intelligence (AI) into various operations.
Major Tech Companies Affected
Amazon has recently declared plans to eliminate 16,000 positions across its global offices. This marks the second round of layoffs for the company since October of the previous year, following an initial reduction of 14,000 jobs. Amazon attributes these staffing changes to the adoption of AI technologies.
Meta, the parent company of Facebook and Instagram, has also indicated a 10 percent reduction in its Reality Labs division, which focuses on metaverse-related products. With approximately 15,000 employees in this division, about 1,500 jobs are expected to be impacted.
Pinterest is set to reduce its workforce by 15 percent as part of a global restructuring initiative, which also includes shrinking its office footprint. The company stated its intention to pursue an AI-forward strategy, necessitating these organizational adjustments.
Expedia reported layoffs in January, although the specific number of affected employees was not disclosed. Despite the job cuts, the online travel booking company is concurrently engaged in new hiring.
In the Indian IT sector, Tata Consultancy Services (TCS) aims to cut 2 percent of its workforce by the March quarter, having already laid off some employees in January. The IT service provider had previously announced in July that it would eliminate 12,000 jobs between 2025 and 2026.
AI-Driven Organizational Changes
The surge in Artificial Intelligence has automated numerous tasks within the tech industry, reducing the demand for human involvement in areas such as code writing and software development. This shift towards AI adoption is leading many companies to implement strategic organizational changes and workforce adjustments.
